The review comes as SUNY's central headquarters investigates the compensation of David R. Smith, the president of SUNY Upstate from 2006 until Thursday, when he resigned amid the revelation that he arranged substantial payments from two outside businesses, including MedBest.

"Recent reports of the relationship of the former president of SUNY Upstate Medical University to MedBest have raised significant red flags about this company's contracts with the state," DiNapoli said. "My auditors will examine whether SUNY Upstate's use of this single source contract with MedBest is in violation of state law and identify if any abuse occurred."

MedBest won a $22.38 million single-source contract with SUNY Upstate in 2010.

More than $5 million has been paid on the five-year deal involving consulting on electronic medical records. "As always, SUNY will cooperate fully with the comptroller's office," said David Doyle, a spokesman for SUNY Chancellor Nancy Zimpher.

Zimpher notified Smith on Nov. 1 that he must report all his compensation sources by Nov. 15. In a letter, she told him that he will likely have to pay back substantial sums and may face disciplinary action.

Smith's outside money has been coming from two companies in recent years that are linked to SUNY Upstate, Zimpher said, identifying MedBest and Pediatrics Service Group LLP. Smith accepted $349,295 from these outside sources without Zimpher's approval, she said.

Officials with the companies did not respond to emails and calls this week.

Zimpher's letter instructed Smith to refrain from taking any more funds from Pediatrics Service Group and to relinquish any rights to deferred compensation from MedBest.